Spotlight on DBS as shares cross $50; Sembcorp among STI's laggards

CDL, ComfortDelGro and CapitaLand Investment to announce results this week

- Kang Wan Chern

Shares of Singapore's biggest bank crossed $50 for the first time after it announced its results for the second quarter of 2025 last week, prompting a flurry of target price upgrades by analysts who cover the stock.

DBS Bank on Aug 7 reported a 1 per cent rise in second-quarter net profit to $2.82 billion for the three months to June 30, exceeding analyst forecasts, due to strong wealth fees and trading income.

An interim dividend of 60 cents and a capital return dividend of 15 cents per share were declared, totalling about $2.13 billion.

DBS chief executive Tan Su Shan said at a results briefing that the bank was able to offset lower interest rates and tariff headwinds with strong balance sheet management and deposit growth.

At least four analysts have since upgraded their target prices on DBS, with Goldman Sachs valuing the stock at $57.20, the highest on the street. Some were less bullish though, with J.P. Morgan and Morningstar warning that the bank will need much stronger catalysts to justify valuations beyond their current level.

The stock hit an all-time high of $50.98 on Aug 8 before closing at $50.74, up 6.7 per cent through the week.

In contrast, rival bank UOB's shares closed lower after it posted on Aug 7 second-quarter net profit of $1.34 billion, down 6 per cent year on year on declining interest rates.

UOB declared an interim dividend of 85 cents a share for the half-year, down from 88 cents a year ago. Shareholders will also receive the second tranche of a special dividend of 50 cents per share — part of a capital distribution package announced in February.

The lender also adjusted its earnings outlook to prepare investors for a more volatile year.

At its results briefing, UOB chief executive Wee Ee Cheong linked the bank's trimmed outlook to muted growth in its Asean markets from tariff impacts.